Microsoft Word 2009 Case Report Page[1]

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airbusvsboeingtermpaper
eco case Group 1

Impacts of governmental intervention
The main issue regards the fact that the governments in the US an EU are accused by Boeing and Airbus to provide various advantages, such as unfair subsidies. If you look at the history of both companies, Boeing was founded in 1916 headquartered in Illinois, Chicago, which gives it a conspicuous advantage over airbus that started in 1970. The immensity of this market and profits related to it make it harder for either government to stop supporting the corporations. With 57000 employees in 16 sites in Airbus, it would be a catastrophe to lose this corporate war. With the fall of comecon, the Russian alliance of communist states, Lockheed's merger with Martin Marietta and divestiture of Dornier and Fokker. Airbus is also aircraft manufacturing unit of European Aeronautic Defense and Space Co. A deep look on profits gives us a comprehensive view of importance of sustaining in the industry (Irwin, DA. & Pavcnik, N, 2004). This is also the primary reason that most discussions in WTO have miserably failed and agreements made ins and 1992 have been breached through these years. In absence of governmental support, which is supposed to be one of the prerequisites of free market principles, these companies would not have sustained longer and would not had investment required

Page 5 (7) to venture into large aircraft manufacture. With government's influence Airbus and Boeing must have gotten support from stakeholders and failure to compete in this race will not only risk corporations itself, but also the stakeholders associated with the business in someway. Aftershocks will also affect rest of the world because of the interconnected economy of our times.

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